Trouble For Microsoft: PC Sales Slip In Q1

Research firm IDC says that global PC shipments dropped 3.2% in the first quarter compared with last year.

That's the first annual decline since Q3 of 2009, when the economy was just picking up from the deepest recession in decades. IDC had previously expected modest growth of 1.5%.

That's bad news for Microsoft, which still Windows and Office for the lion's share of its revenue and profit.

Windows revenue usually tracks PC shipments, which suggests a tough quarter. Office 2010 has helped Microsoft beat Wall Street expectations for the last two quarters, thanks in large part to strong consumer sales, but if consumer PC purchases are stalling, that trend may end this quarter as well.

Microsoft reports earnings for the quarter on April 28.

IDC blamed rising fuel prices, as well as the earthquake and tsunami in Japan for stalling growth there. Apple's iPad and other tablets are also replacing some PC sales, particularly low-cost netbooks and notebooks.

IDC doesn't count tablets in its PC sales numbers, but the Mac is doing OK as well: Apple was the only one of the top five personal computer maker to show growth in the U.S. during the quarter.

Netbook and portable computer leader Acer had a particularly bad quarter, with shipments down nearly 16% worldwide and 42% in the U.S.